FACT Coalition's U.S. Tax Legislative Asks
The current tax code is full of perks and preferences that create a great deal of unfairness in the tax system. Some large multinational corporations pay little or no federal income taxes, year after year, while domestic‐based businesses large and small commonly pay a quarter or even a third of their income in federal taxes. Some very wealthy taxpayers pay an effective rate almost half of that paid by middle‐income workers. We need tax reform that:
- Stops corporations, large and small, and millionaire investors from avoiding the taxes that support the essential goods and services that government provides.
- Ends the gaming that has turned corporate tax departments into profit centers.
- Provides sufficient revenues for vital services, job creation, and deficit reduction.
- Ends Corporate Tax Deferral on Foreign Earnings and enacts a true worldwide system of taxing U.S.‐based multinational corporations. Enacts Interim Measures to curtail abuse of current system until a true worldwide system is completely phased in. Rejects a RepatriationTax Holiday that is, in effect, an amnesty for corporations that have dodged their taxes bysending profits and jobs offshore. Rejects a Territorial System that would give multinationals a permanent zero rate on their foreign earnings.
- Utilizes a “G.E. Rule” that corporate tax reform should be guided by a principle similar to the “Buffett Rule”: multinational corporations should not be paying tax at a lower rate than the small businesses that line Main Street.
- Closes Corporate Tax Loopholes that allow some profitable companies to pay little or no federal income tax while others pay much higher rates.
- Limits Use of S Corporation Rules that allow companies with billions of dollars in revenue to reap the benefits created for “small business.”
- Requires Publicly‐Traded Companies to Disclose Actual Taxes Paid to the IRS so that the public knows the real story about how little taxes some companies pay.
- Improves Enforcement and Closes the “Tax Gap”
- Combats tax haven abuse
- Increases Internal Revenue Service resources
- Requires automatic tax information exchange with other countries
- Enacts country‐by‐country reporting of financial information by publicly listed companies
- Requires disclosure of the beneficial owners of all U.S. corporations
- Enacts measures requiring MORE, not less, third‐party reporting
- Enacts the Tax Lien Simplification Act
- Allows the IRS to publish a Tax Delinquents List